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Thursday, April 19, 2012

TZA Charts

Day-traded the TZA 5 minute chart successfully today.  Caught a pop in the morning and exited before the strange reversal lower.  Wanted to re-enter but was a bit confused with the price action and so only reloaded token position.  Still it worked out on the long side.

On the 60 minute, TZA is in an orderly down channel, with the 20 EMA under the 50 EMA.  STO is in the over bought territory.  Not pressed with much urgency in this time frame.  But look at the daily next.

On the daily chart, TZA looks a lot more bullish.  Recent double bottom with tremendous positive divergence. And now we have a nice looking cup with handle with favorable volumes.  Instead of playing VXX, TZA seems a better instrument, in my opinion.  I would allocate more on TZA over the volatility plays (VXX, TVIX).

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